US Chips Act Draws Investments; Wolfspeed To Build New US Factory To Tap Ballooning EV Demand - Wolfspeed (NYSE:WOLF)

Wolfspeed, Inc WOLF looks to build a new, state-of-the-art, multi-billion-dollar Materials manufacturing facility in Chatham County, North Carolina.
The investment will likely generate a more than 10x increase from Wolfspeed's current silicon carbide production capacity on its Durham campus.
The facility will primarily produce 200mm silicon carbide wafers to supply Wolfspeed's Mohawk Valley Fab.
The first phase of the factory, slated for 2024, would have an investment of about $2 billion, and the total investment could reach $5 billion, Reuters reports citing Wolfspeed CTO John Palmour said.
Silicon carbide power chips gained traction with electric car makers as they can handle high voltages and are more power efficient.
Wolfspeed said industry analysts estimate these types of power chips will make up more than 20% of the power semiconductor market by 2027, up from only 5% today.
The factory, due for completion in 2030, will be the largest silicon carbide materials facility in the world, it said.
"It's actually going to enable eventually about a 13-times increase in our silicon carbide wafer making capacity," Palmour said.
Wolfspeed would apply for a federal government grant linked to the recently passed Chips and Science Act.
Micron Technology, Inc MU earmarked $40 billion through the decade's end to build leading-edge memory manufacturing in multiple phases in the U.S., likely to create up to 40,000 new American jobs.
Price Action: WOLF shares traded higher by 2.60% at $114.18 on the last check Friday.

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